Janet Yellen's speech: what other methods are there for shrinking balance sheet?

As part of a larger series of conversations with former BOE Governor Mervyn King, Federal Reserve Yellen's comments are trickling through from an event taking place at New York University.

Janet Yellen's speech and most recent comments as follows:

Janet Yellen's speech: "There are two ways to shrink balance sheet; We receive principal payments instead of reinvesting or we can redeem some of it, and that is what we are doing."

Janet Yellen's speech: "The alternative sells securities in the markets, but that is not our intention to do that."

Janet Yellen's speech: "The least disruptive path would be to gradually shrink over the span of 4-5 years redeeming principal instead of actively selling securities."

Additional headlines

Janet Yellen's speech: What is the biggest threat to global markets?

Janet Yellen's speech: Meets regularly with Mnuchin and Cohn; do not offer advice on monetary policy

Janet Yellen's speech: Dangerous to allow inflation to drift down and miss target

Janet Yellen's speech live feed:

About Janet Yellen

Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.